Purchase Annual Percentage Rate (APR)

The purchase APR is the annual percentage rate (APR) that is charged on a loan used to purchase an asset, such as a car or a house. The purchase APR is typically higher than the regular APR because it includes fees and other costs that are associated with the loan.

The purchase APR is important to know because it can affect the total cost of the loan. For example, if you take out a loan with a purchase APR of 10% and you borrow $10,000, you will pay $1,000 in interest over the course of the loan. However, if you take out a loan with a purchase APR of 5% and you borrow $10,000, you will only pay $500 in interest over the course of the loan.

It is important to compare the purchase APRs of different loans before you decide which one to take out. You can compare the purchase APRs of different loans by using a loan calculator. A loan calculator will allow you to enter the loan amount, the interest rate, and the length of the loan to calculate the total cost of the loan.

The purchase APR is not the same as the regular APR. The regular APR is the interest rate that is charged on a loan that is not used to purchase an asset. The regular APR is typically lower than the purchase APR because it does not include fees and other costs that are associated with the loan.

It is important to know the difference between the purchase APR and the regular APR so that you can make an informed decision about which loan to take out.